Let’s talk about MicroStrategy selling Bitcoin. First of all, as everyone knows, MicroStrategy issued a lot of debt (well, technically preferred stock) to buy Bitcoin, with interest (dividends) ranging from 8% to 11.5%. Wait… why is it preferred stock and not debt? Because it’s perpetual, has no maturity date, and doesn’t require principal repayment. Its dividends are decided by the board of directors, and since they’re dividends and not interest, it’s technically not debt. But Saylor intentionally designed it this way to make it look like debt. For example, STRC, priced at $100 per share, is meant to mimic the feel of bonds. So, MicroStrategy *has to* pay dividends on time for this to make sense. Otherwise, it’s meaningless. This time, the 32 BTC MicroStrategy sold was used to pay dividends on these preferred stocks, like STRC, and they’ll likely continue to sell small amounts over time. (Be prepared—there might be small sales at the end of each month and larger ones at the end of each quarter, depending on the dividend schedule.) Preferred stockholders only care about whether dividends are paid on time. When they see MicroStrategy selling Bitcoin to pay dividends, it actually reassures them. After all, in terms of priority, preferred stock > common stock. Ultimately, it’s just the regular shareholders who bear the brunt. This sends a signal of market confidence, which helps support the price of these preferred stocks and prepares the ground for issuing more in the future. Plus, MicroStrategy has been very loyal in using the funds raised almost entirely to buy Bitcoin. Now they’re selling a small portion to pay dividends, which, in my opinion, is reasonable. It’s like borrowing $100 to buy Bitcoin and paying $10 back to shareholders this year. Their contribution to Bitcoin’s price is still greater than what they’re taking out. It’s similar to buying a house but renting it out instead of living in it—kind of like using rent to cover the mortgage.